Seoul bourse likely to move sideways next week: analysts

SEOUL, Oct. 3 (Yonhap) -- South Korean stocks are likely to move in a tight range
next week as investors are expected to employ conservative tactics amid a lack of
upward leads, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 1.7 percent, or
28.51 points, to close at 1,644.63 on Friday from a week ago as foreign investors
dumped blue chips on weak economic data coming out from the U.S. and sudden
valuation of the local currency, brining down price competitiveness among
exporters.
Amid a lack of upcoming leads, analysts believe that investors will likely remain
on the sidelines next week against possible fluctuations from third-quarter
earnings reports and the central bank's key interest rate decision.
"Reducing stock purchases seems as an ideal strategy for next week while keeping
tabs on corporate earnings and the central bank's rate decision," Lee Seung-woo,
an analyst at Daewoo Securities, said.
Kim Se-joong, an analyst at Shinyoung Securities, forecast that the market may
require more time to gain a definite upward traction, citing what he sees as a
"deteriorating consumer sentiment" in the U.S.
"The stimulus effect in the U.S. seems to be vanishing following the end of the
so-called cash-for-clunkers program," Kim said.
"It seems unlikely for the market to establish an investment-friendly environment
in the near future as economic indicators, including consumption and unemployment
figures, are worsening," he added.
odissy@yna.co.kr
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